EGL - The Environmental Group

[Dona Ferentes]

1H 24 results out (now 28c)

• There were no dividends paid, recommended or declared during the current financial period.
• The profit for the Group after providing for income tax amounted to $2,076,970 (31 December 2022: $1,410,906).
• EBITDA (profit before depreciation, interest and tax) before significant items for the 6 months ended 31 December 2023 was $4,515,674 (31 December 2022: $3,056,180).
• The Significant items in the period included performances rights expense of $79,170, foreign exchange losses for $92,898 and redundancy $40,589.
• EBIT (profit before interest and tax) before significant items for the 6 months ended 31 December 2023 was $3,413,883 (31 December 2022: $2,249,016).
• The Significant items in the period included performances rights expense of $79,170, foreign exchange losses for $92,898 and redundancy $40,589.
• Profit after interest and tax attributable to Equity Holders of EGL for the 6 months ended 31 December 2023 was$2,076,970 compared to $1,410,906 for the comparative period 31 December 2022.
• The financial position of the Group has strengthened over the period with net assets increasing by $2,156,140 to $38,551,696.

EGL outlook continued

• At this stage we expect EBITDA toincrease approximately 45% year on year before significant items.
• Continue to build products and services delivering recurring revenue.
• Drive margin expansion through improving our business practices and importantly valuing the IP that the company has created
• Management's focus is now moving towards improved business processes, service delivery and standardization.
• Supply chain, purchasing and logistics will be the target areas for savings and margin improvement.
• The two organic growth areas of Water (PFAS separation) and Waste will focus on the commercial opportunity. New organic growth strategies through technology innovation remains a priority.

 

[Dona Ferentes]

and a muted response to 1H , with the early Feb gains disappearing.

CY24 comp @debtfree

 

[Dona Ferentes]

Comp update for April ... @debtfree

No business news or developments in March
Two insto holders dropped below 5 per cent level.

 

[Dona Ferentes]

Two insto holders dropped below 5 per cent level.

and they're back, early May... both at 5.01 per cent

18 April ... Baltec IES Secures New $12.7M Contract
... another major contract win for Baltec IES for the engineering, design, supply and installation of a two stage Gas Turbine Silencer and Exhaust Gas System to Engie Group in Australia. Baltec IES will undertake this work over the next 12 months with installation expected to be completed in April 2025. The project is exciting in that it is taking an existing base load power plant and adding bypass stack equipment to enable operation in peaking mode, giving the client more operating flexibility. Our unique silencer design has been able to meet latest applicable EPA noise requirements whilst optimising turbine performance.
Gas Turbines are widely used to support the Renewable-Energy Sector by supplementing peak load energy requirements. This requires the turbine to be able to deal with the thermal dynamics of heating and cooling into the thousands of cycles. Coupled with mechanical and structural design, our silencer technology has brought together a world class product.

EGL CEO Jason Dixon said, "This project builds on Baltec IES’ expertise in the field of acoustic technology, including silencer design and noise measurements. We anticipate that there will be further similar opportunities in future with clients looking to convert existing combined cycle power plants to peaking operation.”

Securing the Engie Group project brings the value of contracts won by Baltec IES year to date to approximately $35M, setting Baltec IES up for strong performance in the current and following financial year.

YTD:

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Comp update for May ... @debtfree

 

[Dona Ferentes]

comp entry for June ... @debtfree
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a quiet period

13 May ... EGL announced a significant agreement to become the national distributor for Fulton, a worldwide leader in the development of premier heat transfer equipment. Commencing 13 May 2024, EGL Energy (Tomlinson Energy Services & Ignite Services) will be the national distributor for the full Fulton product range.

This is a significant commercial opportunity with the Fulton companies offering a large range of heat exchange products, substantially extending Tomlinson’s product line, particularly in the smaller boiler, electric boiler and condensing hot water heaters.

These products will enable Tomlinson to broaden its sales and service pipeline. EGL believe that this is a substantial growth opportunity in both the industrial and commercial markets.

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....and presented at a conference late May, with an investor info pack released.

 

[Dona Ferentes]

since the Investor Pack was released in May, there has been no further news. The SP trundles on, meanwhile (in the right direction).

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@debtfree ..my July comp contribution

 

[Dona Ferentes]

@debtfree ....my August comp contribution

EGL Water has an enhanced patented technology designed to remove Per- and polyfluoroalkyl chemical substances (PFAS) from contaminated water, soil & biosolids.

c'mon, get busy. solutions needed.

PFAS and drinking water

We welcome the review of the Australian Drinking Water Guidelines (ADWG) provided by the National Health and Medical Research Council (NHMRC). The proposed new guidelines are available for public consultation. We assure customers that the levels of PFAS in drinking water supplied from our 9...

www.sydneywater.com.au

 

[Dona Ferentes]

@debtfree .. Aug

 

[Dona Ferentes]

following the results on the 22/8, EGL has moved up a cent or 2 and now trading around $0.36 on the back of a short term spike in volume.

and early in this month the Apollo group announced they were no longer significant shareholders.

@debtfree Sept comp comment

 

[Dona Ferentes]

a look at EGL over the last few years

How to find an ASX "super stock" early (and an example of one)

This small cap ranks 10th on the list of Aussie super stocks and the outlook suggests the compounding will continue.

www.livewiremarkets.com

 

[Dona Ferentes]

@debtfree Oct comp comment

not much news. New director appointed.

YTD

 

[Dona Ferentes]

@debtfree ..Nov

32c ..has come off, here's why

– Trading Update
The Environmental Group Limited provides a trading update for the financial year ending 30 June 2025 based on management forecasts and year-to-date results.

As part of its FY24 financial results released to the market on 22 August 2024, EGL disclosed that it expected FY25 Normalised EBITDA to increase over FY24 Normalised EBITDA by approximately 25%.

Since this time, revenue performance across the business has been strong and in line with expectations.

However, one project within the Baltec IES business unit has incurred material cost overruns which will impact on EGL’s EBITDA performance for FY25.

The project is for the engineering, design, and supply of two gas turbine silencer and exhaust gas systems in Singapore. The systems required several design variations including to meet the road transport size requirements from port to destination. Through this design process, the increased weights attributable to the design variations (which drive fabrication costs) were not correctly updated in the Project Management System, resulting in materially reduced job profitability.

As a result of this project cost overrun, EGL now anticipates FY25 Normalised EBITDA to increase by between 10–15% over FY24 Normalised EBITDA.

EGL Chief Executive Officer, Jason Dixon commented, “We are incredibly disappointed that this issue will reduce EGL’s growth in profitability for FY25, notwithstanding the underlying strength in the business. A full process review has been undertaken to establish how this one-off oversight occurred and to avoid any future blemishes on our otherwise outstanding track record.”

 

[Dona Ferentes]

went as low as 25.5c, now 29.0c

there was a positive announcement, out today.

KEY HIGHLIGHTS

EGL, in collaboration with Reclaim Waste, is pleased to announce that Reclaim Waste’s liquid waste facility has received draft approval from the Environmental Protection Agency, with the final licence pending issue, to treat per- and poly-fluoroalkyl substances at its Laverton facility through EGL’s PFAS separation plant. This signifies a significant milestone and a shared commitment to improve environmental outcomes and innovative waste management practices.

The draft EPA approval is a testament to the effectiveness and safety of the PFAS separation technology developed by EGL together with site support received from Reclaim Waste.

Rigorous testing and evaluation have demonstrated the PFAS plant's ability to treat PFAS-contaminated waste streams safely, effectively and sustainably. This PFAS plant provides Reclaim Waste with commercial opportunities to accept PFAS-contaminated liquid waste while ensuring compliance with the new EPA waste disposal categories, characteristics, and thresholds released in September 2024, meeting all PFAS discharge limits.